AMD's second quarter is more than a little off target

Subject: General Tech | July 10, 2012 - 02:18 PM |
Tagged: amd, quarterly earnings

While AMD predicted the second quarter of 2012 to be up 3 per cent, plus or minus 3 per cent compared to last quarter, total revenue instead fell by 11%.  This is blamed on the slowed global economy, not just in North America but in other major markets like China and Europe, as opposed to a loss in market share to competitors.  This is not the news AMD was hoping for but because at least some of the loss is due to a reduction in sales volume across the marketplace there is still hope for AMD to turn a profit because the gross margins may remain the same.  Heavy cost reduction at AMD could make the difference in profitability in this economic downturn but that is not really a long term solution if they want to remain innovative and profitable.  The Register has the acutal numbers handy here.

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"The bean counters at AMD have done a first pass on the company's second quarter, and it is not looking so good.

The company said in a statement after Wall Street called it a day on Monday that revenues in the second quarter ended in June would fall by approximately 11 per cent sequentially from the first quarter."

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Source: The Register
July 10, 2012 | 05:15 PM - Posted by Anonymous Coward (not verified)

"needlessly powerful cpus"

Well Mr. Read, it appears the market wants those needlessly powerful CPUs. Adapt or die.

July 11, 2012 | 02:10 AM - Posted by Humanitarian

Well at least that restructure got them making a net profit, shame it's not anywhere near what they wanted.

July 11, 2012 | 02:50 PM - Posted by nabokovfan87

the actual reasons why.....

1. Everyone is waiting for piledriver because of bd issues.
2. Gpu pricing
3. Amds stance on their future path FLAT OUT is the reason i didnt get a new cpu when i upgraded mobo to am3+ and number 1.

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